🏦 BanksWhat is PIDM and what does it protect?
Perbadanan Insurans Deposit Malaysia (PIDM) has protected bank depositors since 2005. It guarantees your money on deposit if a licensed commercial or Islamic bank fails, and it separately protects insurance and takaful benefits. It is funded by premiums the member institutions pay. Deposit cover is up to RM 250,000 per depositor, per bank, it is automatic (you do not opt in), and conventional and Islamic deposits are covered under separate limits. In this article we go through what is covered, what is not, and what members of a co-operative should know.
What is covered and how much
The scheme covers money in savings accounts, current accounts, fixed deposits and most other deposit accounts held with a PIDM member bank, up to RM 250,000 per depositor, per bank. The RM 250,000 includes the principal and any interest or profit. Conventional deposits and Islamic deposits each have their own RM 250,000 limit at the same bank, so a saver with both can be covered for up to RM 500,000 there.
Your balances across accounts of the same type at one bank are added together for the limit — it is a total, not RM 250,000 per account. Joint accounts are covered separately from individual accounts, and foreign-currency deposits are covered, converted to ringgit. Cover is automatic — you do not register.
What is not covered
Unit trusts, ASB/ASN and other investment funds, structured products, shares, bonds and gold accounts are not deposits and are not covered by PIDM — their value moves with the market. Money placed with a co-operative (koperasi), including a co-operative bank product that is not a PIDM-insured deposit, sits outside the scheme; co-operatives are regulated by the Malaysia Co-operative Societies Commission (SKM), not covered by PIDM.
Money with a licensed development financial institution may or may not be PIDM-insured depending on the institution — check before placing a large sum. Anything with an unlicensed 'investment' scheme is outside every guarantee.
If you hold large amounts
If you hold more than RM 250,000 of one type at a single bank you can spread the money across several PIDM member banks, or use both a conventional and an Islamic deposit at the same bank, to stay within the limits. For a very large balance, the strength of the bank matters more than the insurance — the limit only covers part of it.
Be wary of any scheme offering a return well above fixed-deposit rates with no licence behind it. A higher rate with no guarantee is more risk, not a better deal.
Frequently Asked Questions
- How much does PIDM cover?
- Up to RM 250,000 per depositor, per bank, including principal and interest or profit. Conventional and Islamic deposits are covered under separate RM 250,000 limits at the same bank. Balances of the same type are added together, so it is a total, not per account. Foreign-currency deposits are covered, converted to ringgit.
- Are my co-operative (koperasi) savings covered by PIDM?
- No. PIDM covers licensed commercial and Islamic banks. Co-operatives are regulated by the Malaysia Co-operative Societies Commission (SKM) and are not PIDM members. Confirm how your money is protected before placing a large amount with a co-operative.
- Is my unit trust or ASB covered by PIDM?
- No. Unit trusts, ASB/ASN, structured products, shares and bonds are investments, not deposits, so they are outside PIDM and carry market risk. Only money in a deposit account at a PIDM member bank is covered.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the EPF/KWSP, Bank Negara Malaysia, the Inland Revenue Board (LHDN), PIDM) before making a decision.
